Tate & Lyle PLC cut its full-year forecast on Wednesday, citing a slowdown in market demand over the last two months.
The food ingredients supplier now expects revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending March 31, 2026, to decline by a low-single-digit percent compared to the prior year on a pro forma basis.
For the first half of the year, the company said it expects group revenue to be 3% to 4% lower, with EBITDA falling by a high-single-digit percent.
"While the level of customer engagement is high, we have seen a slowdown in market demand, particularly in the last two months, which in turn has slowed our recent performance," Chief Executive Nick Hampton said in a statement.
The weaker outlook comes after the company began operating as a combined business with CP Kelco in April.
Tate & Lyle said that planned revenue and cost synergies from the combination remain on track despite the challenging environment.
The company noted softer consumer demand in the Americas and mid-single-digit lower revenue in Europe for the first half.
More from this issuer
Related coverage
Tate & Lyle PLC cut its full-year forecast, citing a slowdown in market demand, but said on Thursday it would raise its interim dividend.